The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1887-01-01
The Herbst Case.
Testimony as to the Operations of IN
Glen Rock Bank.

From the Baltimore San.
There was further hearing before United
States Commissioner Rodgers on "Wednesday
in the case of VIM. II. Herbst and Jacob S.
Herbst, of Glen Rock, York county, Pa,
charged with aiding and ahsst;lag William
Herbst. their father; ght of the First
National Ba2sl - Rock, and Henry
Seitz, C. de same bank, to defraud
the sin. Herbst & Sons, leading mer-
81 YGlen Rock, made an assignment
5er u, 1886. The president and cashier
a under bonds to answer at Philadelphia,
and the object of the present proceeding is to
hold the two sons of the president of the bank
for the United States authorities at Philadel-
phia. VIM. Herbst, president ofthe bank and
father of the accused, testified that the stock
of goods of VIM. Herbst 4 Sons was sold for
$6,000 If it had beeu sold at the regular re-
tail price it would have brought almost double.
He blamed all the alleged irregularities on
his sons.
Mr.. Nathaniel q. Seitz, special examiner of
pensions. who was detailed by the Attorney
General, at the special request of United
States District Attorneys Hayes, of Balti-
more. sesd Valentine, of Philadelphia, to ex-
aminusiie = 40 Of the bank, gave the result
ia 2. 5zldsuOsits l.she G1ua amount
cd g 81, bsl. OF; l..ss,s SOL, 1862; total
overdrafts, 1913, 155 80. to cover which the
bank has notes of VIM. Herbst & Sons for
Sl4,472, leaving S18,683. so entirely unse-
cured. OF the Sl4,472 notes, $1,000 are al
legged to have been forged. In addition, the
firm Of VIM. Herbst Il Sons owes the bank
81, $40 on notes. Of the $40, 0l2 owed by the
firm on its paper, only $40 was regularly dis
counted by authority of the board of directors
Of the bank. In the course of business from
1879 to 1886 the firm made only five per cent.
of the gross transient deposits in the bank.
The entire liability Of the firm and its men,
bers to the bank is as follows: Firm of VIM.
Herbst & Sons, $33, so; VIM. Herbst, in
dividually, S9,S72.33; Jacob S. Herbst, 49,
$751; 4s; VIM. H. Herbst, 81 1865; total, $780,
S6431. Of this amount, it is. claimed, only
Sc, 900 was authorized by the directors of the
bank. The capital stock of the bank is $751;
600. 1t is alleged the books of the bank were
confused so as to deceive the government
officers and bank auditors.
Messrs. J. V. Hoshour, G. +. Heathcote
and E. r. Miller, all of Glen Rock, testified
that they had at different times been called
upon to act as auditors of the bank accounts.
The auditing committee consisted of three
persons, William H. Herbst, Jacob S. Herbst
and one of the witnesses. The amounts of
the notes were read from book by one of
the Messrs. Herbst, but the names of the
drawers or indosers were not shown TO the
third auditor. Mr.. Joseph Disc, the present
president of the bank, testified as to who com,
posed the exchange committee. Messrs.
George F. Seitz and J, A. Krebbs, directors
Of the bank, and members of the exchange
committee, testified that they had seen but
l-two small notes of the firm Of VIM. Herbst 4
Sons during the period covered by the trans
actions under examination. The hearing was
continued to obtain further testimony.